Home Prices Climb 2.2 Percent Nationwide From April to May – NMP Skip to main content

Home Prices Climb 2.2 Percent Nationwide From April to May

NationalMortgageProfessional.com
Aug 01, 2012

Data through May 2012, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed that average home prices increased by 2.2 percent in May over April for both the 10- and 20-City Composites. With May’s data, it was found that home prices fell annually by one percent for the 10-City Composite and by 0.7 percent for the 20-City Composite versus May 2011. Both Composites and 17 of the 20 MSAs saw increases  in annual returns in May compared to April. Boston, Charlotte and Detroit were the three cities that saw their annual returns worsen in May, with annual rates of -0.1 percent, +0.9 percent and +0.6 percent, respectively. Atlanta continues to be the only city posting a double-digit negative annual return with -14.5 percent. However, this is an improvement over the -17 percent annual decline recorded in April 2012. All 20 cities and both Composites posted positive monthly returns. No cities posted new lows in May 2012. “With May’s data, we saw a continuing trend of rising home prices for the spring,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “On a monthly basis, all 20 cities and both Composites posted positive returns and 17 of those cities saw those rates of change increase compared to what was observed for April. Seventeen of the 20 cities and both Composites also saw improved annual rates of return. We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns; however, we need to remember that spring and early summer are seasonally strong buying months so this trend must continue throughout the summer and into the fall." “The 10- and 20-City Composites were each up 2.2 percent for the month and recorded respective annual rates of decline of 1.0 percent and 0.7 percent, compared to May 2011," said Blitzer. "While still negative, these annual changes are the best we’ve since in at least 18 months." Measured from their June/July 2006 peaks through May 2012, the decline for both Composites is approximately 33 percent. The 10-City Composite recently reached its low in the current housing cycle in March 2012 and the 20-City in February 2012; at that time both Composites were down approximately 35 percent from their summer 2006 peaks.  In May 2012, we observed all 20 MSAs and both Composites posting positive monthly returns. Atlanta, again, was the only city to post a double-digit negative annual rate of return of 14.5 percent; however it saw improvements in both monthly and annual rates versus what was published for April. Phoenix posted the highest annual rate of growth amongst all 20 cities at +11.5 percent, an improvement over the +8.6 percent annual return recorded in April. Chicago fared the best in terms of monthly returns with a 4.5 percent increase in home prices as compared to April. Atlanta, Cleveland, Detroit and Las Vegas continue to have average home prices below their January 2000 levels. “Taking a closer look at the cities, Phoenix again posted the best annual return. Average home prices in that region were up 11.5 percent versus May 2011," said Blitzer. "It was one of the hardest hit cities in the collapse, and prices are still more than 50 percent below their June 2006 peak, but the past five months have been positive for that market. Miami and Tampa are two other Sunbelt cities that were hard-hit in the downturn, but are now showing positive annual rates of change. Boston, Charlotte and Detroit, on the other hand, saw their annual rates of return deteriorate compared to April, even though prices rose over the month of May. Las Vegas posted both a positive monthly change in May and saw an improvement in its annual return; that said, the market is still more than 60 percent below it August 2006 peak."
Published
Aug 01, 2012
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Tech
Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Community
Nov 23, 2021
MISMO Seeks To Standardize Pre-Closing Title Data

Forming workgroup to focus on standardizing document datasets to streamline process and increase efficiency.

Industry News
Nov 23, 2021
Pandemic's Impact On Real Estate Around The World

Although the impact of the COVID-19 pandemic on the real estate industry has been well-documented within the United States, it’d be prudent to know how the global event impacted other countries as well. 

Industry News
Nov 22, 2021
Housing Market Potential Strengthens Modestly

First American Financial Corporation's Potential Home Sales Model for October 2021 reported that potential existing-home sales increased 0.1% month-over-month to 6.27 million, with household formation continuing to grow, largely driven by millennials.

Analysis and Data
Nov 22, 2021